If You Missed These Explosive China Stocks, Here's How You Could Get In

China stocks Huya (HUYA), iQiyi (IQ) and Bilibili (BILI) are notable young companies in the hot online media industry that are seeing explosive growth in their share prices. If you’re looking for a proper entry for these runaway stocks, you may soon be able to get your chance. Meanwhile, Momo (MOMO) is extended but not overheated.

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Hot China Stocks

These hot China stocks are in the same industry groups as big-name U.S. internet companies. Huya and Bilibili are in the Internet-Content group along with Google parent Alphabet (GOOGL) and Facebook (FB), while iQiyi joins Netflix (NFLX) in the Leisure-Movies & Related group. Top stocks typically come from top industry groups. The Leisure-Movies & Related group is ranked No. 3 out of the 197 industry groups IBD tracks, while Internet-Content is ranked No. 11.

New Buy Points Soon?

IQiyi and Bilibili reversed lower Friday and dropped below their 10-day moving averages after being well-extended from that level. Meanwhile, Huya extended its gains Friday, though it backed well off its intraday high. At one point intraday, the stock was extended as much as 40% from its 10-day moving average.

When a stock becomes 20% extended from its 10-day moving average, that’s usually when pullbacks are seen. If these highflying stocks are able to consolidate, that could provide investors with fresh buying opportunities.

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Strong Growth Since IPO Debuts

All three stocks have made rapid moves since their IPOs earlier this year.

Baidu (BIDU) spinoff iQiyi is up a whopping 95% since breaking out of an IPO base with a 20.60 buy point on May 10. IQiyi is known as the Netflix of China and it licenses some of its content from Netflix.

Bilibili, a youth-focused media platform, is up 65% since breaking out of an IPO base of its own in May. Bilibili and iQiyi both debuted in late March.

And Huya, a livestreaming platform for gaming in China, went public on May 11 as a spinoff of YY (YY), which is also a livestreaming company. The stock has yet to take an official breather, never forming a proper IPO base along its run. Shares have risen 285% from the IPO price of 12.

Still In Early Stages Of Growth

As iQiyi, Bilibili and Huya are young names in China’s growing internet marketplace, their growth stories still seem to be in the early stages. Huya is turning profitable, while Bilibili is expected to be profitable soon. And all three of these China stocks have already seen strong revenue growth. Looking at stocks that are in the early stages of growth is key to scoring big gains.

Momo Well Extended From Buy Zone

China’s Momo, which went public in December 2014, is well extended from its last proper buy point. But Momo is clinging closely to its 10-day moving average, unlike the three names above. The stock gapped up on May 29 after earnings and is now up 33% from a 40.55 cup entry.

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The post If You Missed These Explosive China Stocks, Here's How You Could Get In appeared first on Investor's Business Daily.

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